Central Sun Mining Inc.
TSX : CSM
TSX : CSM.WT
AMEX : SMC

Central Sun Mining Inc.

March 24, 2008 18:45 ET

Central Sun Reports 2007 Financial Results

TORONTO, ONTARIO--(Marketwire - March 24, 2008) - Central Sun Mining Inc. (TSX:CSM)(TSX:CSM.WT)(AMEX:SMC) reports its financial results for the year ended December 31, 2007 (currency figures in US dollars). The consolidated financial statements along with management's discussion and analysis are available for viewing on the Central Sun Mining website at www.centralsun.ca. The documents have been filed with SEDAR (www.sedar.com) and should be available on SEDAR no later than 24 hours from dissemination of this release. The documents will be included in the Company's Annual Report and will be mailed to shareholders.

"Our 2007 year end results reflect the difficult period that the Company experienced in 2007 with the unexpected suspension of the Bellavista Mine and temporary suspension of the Orosi Mine. Central Sun has soundly overcome this challenging year and we are progressing well in meeting our goals and objectives for 2008 and beyond. The Limon Mine is performing well and meeting expectations, the Orosi Mine mill construction project is progressing on schedule and the exploration program has started quickly and has had some excellent successes so far," said President and CEO, Peter Tagliamonte. "2008 will be a year that we concentrate on enhancing the Limon Mine's performance and gold production, building and completing the Orosi mill project and expand our resource base through exploration," Mr. Tagliamonte noted.

Highlights:

- The Company successfully restructured and closed on a private placement financing of Cdn $26.0 million

- New Management and Board Members were added

- The Company successfully suspended operations in Q3 at its Bellavista Mine eliminating any possible environmental damage due to ground movement

- The Company temporarily suspended operations at its Orosi Mine in Nicaragua in Q1 2007 as it undertakes the installation of a new milling process that will improve overall recovery from 38% to over 90%

- The suspension of these two mining operations impacted the Company's financial results for the year as follows:

-- The Company incurred a $55.5 million write down due to the suspension of the
Bellavista Mine

-- Revenue decreased 8% to $48.2 million in 2007 compared to revenue of $52.2
million in 2006

-- Gold production decreased 12% to 75,944 ounces compared to 86,420 ounces in
2006

-- Gold sales decreased 17% to 71,668 ounces compared to 86,536 ounces in 2006

-- Earnings from mine operations at Bellavista, Limon and Orosi totalled $0.3
million compared to a loss of $0.6 million in 2006

-- Net loss for 2007 was $60.9 million compared to a $7.4 million loss in 2006

-- Cash operating costs per ounce of gold sold was $515 per ounce in 2007
compared to $452 per ounce in 2006

- Cash flow used in operations, before changes in non-cash working capital, totalled $6.8 million in 2007 compared to $5.4 million generated in 2006

- Average realized gold price in 2007 was $672 per ounce compared to $603 in 2006

Results of Operations - Fiscal 2007 Compared to Fiscal 2006



Limon Mine

2007 2006 Change % Change

Gold sold (ounces) 32,053 33,067 (1,014) (3%)
Pre-production gold ounces sold(i) 482 1,095 (613) (56%)
Average realized gold price ($/ounce) 686 605 81 13%

Cash operating costs ($/ounce) 564 469 95 20%
Total cash costs ($/ounce) 608 507 101 20%
Tonnes milled 287,710 295,562 (7,852) (3%)
Ore grade (g/tonne) 5.1 4.4 0.7 16%
Recovery (%) 78.5 83.3 (4.8) (6%)
Gold produced (ounces) 36,702 34,341 2,361 7%

($ in thousands)
Sales $ 22,002 $ 20,003 $ 1,999 10%
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Cost of sales 18,085 15,510 2,575 17%
Royalties and production taxes 1,403 1,250 153 12%
Depreciation and depletion 1,289 1,283 6 0%
Accretion 69 64 5 8%
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$ 20,846 $ 18,107 $ 2,739 15%
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Income from mining operations $ 1,156 $ 1,896 $ (740) (39%)
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(i) These gold ounces were produced and sold in the pre-commercial production period from the Santa Pancha deposit and are not included in sales figures as disclosed in this Management's Discussion and Analysis and in the Consolidated Financial Statements.

Sales from the Limon Mine increased by $1,999,000 or 10% in 2007 compared to 2006. The higher gold production was from the higher ore grades mined in the Santa Pancha area of the Limon Mine. This was marginally offset by the lower recoveries on the Santa Pancha ore body in 2007 compared to the recovery experienced in the Talavera ore body in 2006. The market strength for gold resulted in a 13% increase in the average realized gold price per ounce which contributed to the increase in sales revenue.

Cost of sales increased by $2,575,000 or 17% and cash operating costs per ounce increased by $95 to $564 in 2007. The increased cost of sales was attributed to generally higher production costs, especially salaries, fuel, and electricity costs. Royalties and production taxes increased by 12% as gold ounces produced increased over the previous fiscal year. The gold produced at the Limon Mine in 2007 was 4,649 ounces higher than the gold sold due to timing issues. This difference was carried in inventory at December 31, 2007 and sold in early January 2008.



Orosi Mine(ii)

2007 2006 Change % Change

Gold sold (ounces) 16,619 14,639 1,980 14%
Average realized gold price
($/ounce) 665 617 48 8%

Cash operating costs ($/ounce) 594 776 (182) (23%)
Total cash costs ($/ounce) 627 807 (180) (22%)
Tonnes mined 366,113 641,743 (275,630) (43%)
Ore grade (g/tonne) 2.0 1.8 0.2 11%
Gold produced (ounces) 16,365 14,797 1,568 11%

($ in thousands)
Sales $ 11,049 $ 9,032 $ 2,017 22%
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Cost of sales 9,875 11,363 (1,488) (13%)
Royalties and production taxes 545 449 96 21%
Depreciation and depletion 2,384 2,401 (17) (1%)
Accretion 92 45 47 104%
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$ 12,896 $ 14,258 $ (1,362) (10%)
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Loss from mining operations $ (1,847) $ (5,226) $ 3,379 65%
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(ii) The fiscal 2007 figures are from mining operations covering the period January 1 to March 31, 2007 and leaching operations for the 11 months ending November 30, 2007. Comparative information presented for 2006 only contains data for the period July 6, 2006 to December 31, 2006, after Central Sun took over ownership of the mine.

Central Sun acquired the Orosi Mine in July of 2006. The site sold 12,146 ounces during the first quarter of 2007 but at high cash operating costs. Management suspended operations on March 31, 2007 while the Company commenced a project to convert the site to a conventional milling circuit. Subsequent recoveries of gold ounces were from residual heap leaching.

Selected Annual Information



2007 2006 2005
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Gold sales (ounces) 71,668 86,536 43,228
Average spot gold price ($/ounce) $ 695 $ 603 $ 445
Average realized gold price ($/ounce) $ 672 $ 603 $ 448
Cash operating costs ($/ounce) $ 515 $ 452 $ 369
Total cash costs ($/ounce) $ 545 $ 477 $ 393

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($ in thousands, except per share amounts)
Sales $ 48,190 $ 52,150 $19,383
Cost of sales $ 36,882 $ 39,148 $15,931
Orosi Mine - Mill Project $ 2,743 $ - $ -
Bellavista Mine write-down $ 55,523 $ - $ -
Loss from continuing operations $(64,321) $ (7,334) $(4,077)
Income (loss) from discontinued operations $ 3,397 $ (72) $ -
Net loss $(60,924) $ (7,406) $(4,077)
Loss per share from continuing operations -
basic and diluted $ (1.75) $ (0.25) $ (0.18)
Loss per share - basic and diluted $ (1.65) $ (0.25) $ (0.18)

Cash $ 16,762 $ 9,548 $ 6,799
Working capital $ 19,676 $ 13,607 $ 6,144
Total assets $ 73,555 $105,357 $70,239
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At December 31, 2007, the Company had cash of $16,762,000 (2006 - $9,548,000) and working capital of $19,676,000 (2006 - $13,607,000).

Conference Call

A conference call will be held on March 26, 2008 at 11 a.m. to discuss the year end results along with an exploration and operations update. To participate, dial 416-641-6132 or, toll free in North America, 1-866-226-1792. The conference call will be archived and available for replay until April 2, 2008, by dialing 416-695-5800 or, toll free in North America, 1-800-408-3053. Use the passcode 3256862.

About Central Sun Mining

The Company is a growing gold producer with mining and exploration activities focused in Nicaragua. The Company operates the Limon Mine in Nicaragua and is converting the Orosi Mine in Nicaragua to conventional milling to increase the annual gold output. It also holds an option to acquire a 100% interest in the Mestiza gold property which is located 70 kilometres east of the Limon Mine. The Company is focused on efficient and productive mining practices to establish high quality and cost effective operations. Central Sun Mining is committed to growth by optimizing current operations, expanding mineral reserves and resources at existing mines as well as exploring its extensive land holdings.

Cautionary Note Regarding Forward-Looking Statements: This news release contains certain "forward-looking statements", within the meaning of the United States Private Securities Litigation Reform Act of 1995, and "forward-looking information" under similar Canadian legislation, concerning the business, operations and financial performance and condition of the Company. Forward-looking statements and risk factors include, but are not limited to, statements with respect to the implementation of the Company's strategic plan; the future financial or operating performance of the Company, its subsidiaries and its projects; the future price of gold; expectation that the Orosi Mill feasibility study will be positive; capital requirements for completion of the Orosi Mill project; successful implementation of the Orosi Mill project; the estimated Orosi Mill recovery rates; the estimation of mineral reserves and resources, the realization of mineral reserve estimates; the timing and amount of estimated future production; costs of production; operating and exploration expenditures; mining or processing issues; costs and timing of the development of new deposits; costs, timing and success of future exploration; government regulation of mining operations; permitting time lines and permitting; labour disruptions; environmental risks; unanticipated reclamation expenses; title disputes or claims; limitations on insurance coverage and regulatory matters. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans", "expects", "budget", "scheduled", "estimates", "forecasts", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of the Company as of the date such statements are made, and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking statements. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company does not undertake to update any forward-looking statements that are incorporated by reference herein, except in accordance with applicable securities laws.

Contact Information

  • Central Sun Mining Inc.
    Andre Bharti
    Investor Relations
    (416) 860-0919
    or
    Central Sun Mining Inc.
    Peter W. Tagliamonte
    President & CEO
    (416) 860-0919
    or
    Central Sun Mining Inc.
    Denis Arsenault
    Chief Financial Officer
    (416) 860-0919
    (416) 367-0182 (FAX)
    Email: ir@centralsun.ca
    Website: www.centralsun.ca